The British retail sector faced significant disruption in 2024, with nearly 170,000 jobs lost. According to the Centre for Retail Research (CRR), a total of 169,395 retail jobs were cut this year — a 42 percent increase compared to 2023 and the highest annual total since the Covid-19 pandemic-driven redundancies of 2020.
Retailers continue to face headwinds from inflation, rising energy costs and increasing rent and business rates. "The comparatively low figures for 2023 now look like an anomaly, a pause for breath by many retailers after lockdowns if you like," said Professor Joshua Bamfield, director of the Centre for Retail Research.
"The problems of changed customer shopping habits, inflation, rising energy costs, rents and business rates have continued and forced many retailers to cut back even more strongly in 2024."
Among the hardest hit were 38 major retailers that entered administration during the year, resulting in 55,914 job losses — approximately one-third of the total! Well known brands like Carpetright, Homebase, Ted Baker and The Body Shop were among those affected. Also, store closures and cost-cutting measures from independent businesses further contributed to the rising unemployment figures.
As CX Network reported in November, contact center workers have also been hit hard, with retailer H&M as well as insurer Direct Line and international bank Santander, all reducing headcounts in customer service.
What went wrong?
The sharp increase in job losses reflects a reversal of the relative stability seen in 2023. However, long-term trends of declining foot traffic and the growing dominance of e-commerce continue to reshape the landscape.
According to the British Retail Consortium (BRC), consumer spending in brick-and-mortar stores declined by five percent year-on-year, while online retail grew by 12 percent, underscoring the shift in consumer behaviour. The BRC also reported that retail vacancy rates climbed to 14.5 percent in 2024, as more physical stores shuttered operations.
In response to these challenges, industry leaders are advocating for policy reforms to ease the financial strain on retailers. Calls to reduce business rates and introduce high street revitalization initiatives are gaining momentum. Without decisive action, experts warn that job losses may continue into 2025, further affecting customer experience (CX) and engagement.
What this means for CX
The widespread job losses and store closures have direct implications for customer experience. Reduced staffing levels can lead to longer wait times, less personalized service and a diminished in-store atmosphere. For online retailers, increased demand may strain logistics and customer service teams, potentially affecting delivery times and responsiveness.
The importance of getting this right is highlighted in CX Network’s Global State of CX 2024 report, which states that the customer’s demand for convenience became more significant for the work of the CX practitioner in 2024, rising from the fourth to the most influential behaviour year-on-year.
As competition intensifies, retailers must focus on enhancing the customer journey through digital transformation and improved omnichannel strategies. Personalization, seamless online-to-offline experiences and customer loyalty programs will become key differentiators in attracting and retaining customers.
Also, brands that prioritize transparency and sustainability may resonate more strongly with consumers, who are increasingly seeking ethical and value-driven purchasing options. Investing in staff training, automation and AI-driven customer service solutions can also mitigate some of the operational strains caused by workforce reductions.
For CX professionals, the key takeaway is the need to remain agile, adaptable and deeply attuned to consumer expectations. Through focusing on delivering exceptional experiences, retailers can foster stronger customer relationships and drive long-term customer loyalty.
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Quick links
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